Gavin is trying to come up with a pricing strategy for his store. He greatly admires Walmart and is considering adopting an everyday low price strategy. However, he is concerned because he believes that consumers might then view his products as being of low quality. At what stage of the process is Gavin currently at as he is trying to establish prices?
A) Step 1: Development of pricing objectives
B) Step 2: Assessment of the target market's evaluation of price
C) Step 3: Assessment of competitor's prices
D) Step 4: Selection of a basis for pricing
E) Step 5: Determination of a specific price

Question

Quizplus · Accepted Answer

Gavin is currently assessing how his target market will evaluate his prices. He is considering an everyday low price strategy but is concerned about how it will be perceived by consumers. This falls under the second step of the pricing process, which is evaluating the target market's perception of price. The other steps include developing pricing objectives, assessing competitors' prices, selecting a pricing basis, and determining a specific price.

Gavin Is Trying to Come Up with a Pricing Strategy